The United States Treasury Department has intensified investigations into alleged fraud involving businesses used to send money from Minnesota to Somalia, as the Trump administration expands its crackdown on financial crimes within the state’s Somali community.
Treasury Secretary Scott Bessent confirmed on Friday that the department is focusing on money wire services commonly used by families to transfer funds to relatives abroad. The move comes amid growing federal scrutiny over claims that Minnesota has become a centre for large-scale fraud and money laundering.
President Donald Trump has previously singled out Minnesota, describing it as a “hub of fraudulent money laundering activity,” and has directed immigration and financial enforcement agencies to increase oversight of the Somali community as part of a broader fraud crackdown.
The latest action follows several high-profile fraud cases, most notably the Feeding Our Future scandal. Prosecutors allege the nonprofit misappropriated pandemic relief funds intended for school meal programmes, with estimated losses reaching $300 million.
Bessent has also referenced a report published by conservative outlet City Journal, which claimed that taxpayer money siphoned from government programmes was funneled to al-Shabab, an al-Qaida-linked militant group operating in parts of Somalia. However, the report cited unnamed sources, and no such allegations have been formally proven in court.
Importantly, federal prosecutors have not charged any individuals in the Feeding Our Future case — or related investigations — with providing support to terrorist organisations.
As part of the new measures, Bessent said the Treasury will soon issue an order requiring money transfer services sending funds to Somalia to comply with additional verification and reporting requirements.
The Financial Crimes Enforcement Network (FinCEN) will be deployed to assist in monitoring potential money laundering and terrorism financing risks, while the Internal Revenue Service (IRS) will also take part in examining firms suspected of fraudulent activity.
“Treasury personnel are on the ground working hard to uncover the facts,” Bessent said, adding that multiple agencies are coordinating to strengthen oversight and enforcement.
The expanded probes are likely to intensify debate around financial regulation, immigration enforcement, and the potential impact on law-abiding members of Minnesota’s Somali community, many of whom rely on money transfer services to support family members overseas.
As investigations continue, officials stress that the focus remains on uncovering fraud and financial crimes — while no formal links to terrorism have been established through the courts at this stage.
